HHS Awards $25M to MITRE for Healthcare Innovation R&D
Contract Overview
Contract Amount: $25,075,874 ($25.1M)
Contractor: THE Mitre Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2024-06-26
End Date: 2029-06-20
Contract Duration: 1,820 days
Daily Burn Rate: $13.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TITLE IS SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $25.1 million to THE MITRE CORPORATION for work described as: TITLE IS SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE Key points: 1. Significant investment in R&D for healthcare affordability and quality. 2. MITRE Corporation, a well-established research organization, is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Focus on physical, engineering, and life sciences R&D aligns with healthcare challenges.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure allows for cost reimbursement plus a fixed fee, which can be less predictable than fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure to achieve the lowest possible cost.
Taxpayer Impact: Taxpayer funds are being used for a sole-source R&D contract, raising questions about whether the best value was secured through competition.
Public Impact
Potential for advancements in affordable and improved healthcare services. MITRE's expertise may lead to breakthroughs in medical technology and processes. Lack of competition could mean higher costs for taxpayers. Long-term contract duration suggests a strategic, ongoing research initiative.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can be prone to cost growth.
- Lack of transparency in R&D cost drivers.
Positive Signals
- Award to a reputable research organization (MITRE).
- Focus on critical area of healthcare affordability and quality.
- Long-term commitment to innovation.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its often intangible outcomes and complex cost structures.
Small Business Impact
There is no indication of small business participation in this sole-source award to The MITRE Corporation. Future contracts should explore opportunities for small business involvement in R&D.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that project milestones are met efficiently. Regular reporting on R&D progress and cost adherence is essential.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract.
- Potential for cost overruns.
- Lack of defined competition.
- Uncertainty in R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $25.1 million to THE MITRE CORPORATION. TITLE IS SOLUTIONS TO SUPPORT INNOVATION IN PURSUIT OF AFFORDABLE AND BETTER HEALTH CARE
Who is the contractor on this award?
The obligated recipient is THE MITRE CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $25.1 million.
What is the period of performance?
Start: 2024-06-26. End: 2029-06-20.
How will the effectiveness of the R&D be measured and validated, especially given the long-term nature of the contract?
Effectiveness will likely be measured through a series of defined milestones and deliverables outlined in the contract. The Centers for Medicare and Medicaid Services (CMS) should establish clear performance metrics and conduct regular reviews to assess progress towards achieving affordable and better healthcare solutions. Independent validation of research outcomes may also be necessary.
What is the justification for awarding this contract sole-source, and how does it ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances. Without this information, it's difficult to assess fair pricing. However, the Cost Plus Fixed Fee structure implies that while the fee is fixed, the underlying costs are reimbursed. Robust negotiation and ongoing cost monitoring by HHS are critical to ensure fair pricing in the absence of competition.
What specific innovations are anticipated, and what is the projected return on investment for taxpayers?
Specific innovations are not detailed in the provided data, but the contract aims to support affordable and better healthcare. Projected ROI is challenging for R&D, as outcomes are uncertain. Success would be measured by tangible improvements in healthcare efficiency, cost reduction, or quality of care, which could yield significant long-term benefits outweighing the initial investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,306,699
Exercised Options: $25,075,874
Current Obligation: $25,075,874
Actual Outlays: $18,044,589
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $9,515,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75FCMC23D0004
IDV Type: IDC
Timeline
Start Date: 2024-06-26
Current End Date: 2029-06-20
Potential End Date: 2029-06-20 00:00:00
Last Modified: 2026-03-25
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